Chapter 2 of Management Information Systems Part 1 - Organizations, Management and Networked Enterprise

1. Management Information System
with Internet Technologies
Part 1 Organizations, Management
and the Networked Enterprise
Chapter 2 Business Processes and
Information Systems

2. Chapter 2
Business Processes and Information
Systems

3. Business Processes
• Business processes refer to the manner in
which work is organized, coordinated, and
focused to produce a valuable product or service.
• Business processes are the collection of
activities required to produce a product or
service.
• Asset or Liability?

4. EXAMPLES OF FUNCTIONAL BUSINESS
PROCESSES

5. How Information Technology Improves
Businesses Processes
• Information systems automate many steps in
business processes that were formerly
performed manually, such as checking a client’s
credit, or generating an invoice and shipping
order.
• But Information Technology can do so much
more.

6. Information Technology can do more
• New technology can actually change the flow of
information, making it possible for many more
people to access and share information,
replacing sequential steps with tasks that can be
performed simultaneously, and eliminating
delays in decision making.
• New information technology frequently changes
the way a business works and supports entirely
new business models.

7. Independence vs. Cross-functionality
• A typical business organization has systems
supporting processes for each of the major
business functions—systems for sales and
marketing, manufacturing and production,
finance and accounting, and human resources.
• Independent Functional Systems vs. Large-scale
Cross-functional Systems

8. Types of Information Systems
• Transaction Processing Systems
• Management Information Systems
• Decision Support Systems
• Execute Support Systems

9. Transaction Processing Systems
• A transaction processing system is a
computerized system that performs and records
the daily routine transactions necessary to
conduct business, such as sales order entry,
hotel reservations, payroll, employee record
keeping, and shipping.
• The principal purpose of systems at this level is
to answer routine questions and to track the flow
of transactions through the organization.

10. A TYPICAL PAYROL TPS

11. Management Information Systems
• Management information systems (MIS) also
designates a specific category of information
systems serving middle management.
• MIS provide middle managers with reports on
the organization’s current performance.

12. HOW MANAGEMENT INFORMATION SYSTEMS OBTAIN
THEIR DATA FROM THE ORGANIZATION’S TPS

13. SAMPLE MIS REPORT

14. Decision Support Systems
• Decision-support systems (DSS) support more
non-routine decision making.
• They focus on problems that are unique and
rapidly changing, for which the procedure for
arriving at a solution may not be fully predefined
in advance.

15. VOYAGE ESTIMATING DSS

16. Executive Support Systems
• Executive support systems (ESS) help senior
management make these decisions.
• They address non-routine decisions requiring
judgment, evaluation, and insight because there
is no agreed-on procedure for arriving at a
solution.

17. Dundas Data Visualization’s
digital dashboard delivers
comprehensive and accurate
information for decision
making. The graphical
overview of key performance
indicators helps managers
quickly spot areas that need
attention.

18. Enterprise Applications
• Enterprise Applications – systems that span
functional areas, focus on executing business
processes across the business firm, and include
all levels of management.
• Help businesses become more flexible and
productive by coordinating their business
processes more closely and integrating groups of
processes so they focus on efficient management
of resources and customer service.

20. Major Enterprise Applications
• Enterprise systems,
• Supply chain management systems
• Customer relationship management systems
• Knowledge management systems

21. Enterprise Systems
• Also known as Enterprise Resource Planning
(ERP) Systems.
• Integrate business processes in manufacturing
and production, finance and accounting, sales
and marketing, and human resources into a
single software system.

22. Supply Chain Management Systems
• These systems help suppliers, purchasing firms,
distributors, and logistics companies share
information about orders, production, inventory
levels, and delivery of products and services so
that they can source, produce, and deliver goods
and services efficiently.

23. Customer Relationship Management
Systems
• CRM systems provide information to coordinate
all of the business processes that deal with
customers in sales, marketing, and service to
optimize revenue, customer satisfaction, and
customer retention.

24. Knowledge Management Systems
• Enable organizations to better manage processes
for capturing and applying knowledge and
expertise.
• These systems collect all relevant knowledge and
experience in the firm, and make it available
wherever and whenever it is needed to improve
business processes and management decisions.

25. Intranets and Extranets
• Intranets are simply internal company Web sites
that are accessible only by employees.
• The term “intranet” refers to the fact that it is an
internal network, in contrast to the Internet,
which is a public network linking organizations
and other external networks.
• Extranets are company Web sites that are
accessible to authorized vendors and suppliers,
and often used to coordinate the movement of
supplies to the firm’s production apparatus.

26. E-Business or Electronic Business
• Refers to the use of digital technology and the
Internet to execute the major business processes
in the enterprise
• E-business includes activities for the internal
management of the firm and for coordination
with suppliers and other business partners.

27. E-Commerce or Electronic Commerce
• E-commerce is the part of e-business that deals
with the buying and selling of goods and services
over the Internet.
• It also encompasses activities supporting those
market transactions, such as advertising,
marketing, customer support, security, delivery,
and payment.

28. E-Government or Electronic
Government
• E-government refers to the application of the
Internet and networking technologies to digitally
enable government and public sector agencies’
relationships with citizens, businesses, and other
arms of government.

29. Collaboration
• Collaboration is working with others to
achieve shared and explicit goals.
• Collaboration focuses on task or mission
accomplishment and usually takes place in a
business, or other organization, and between
businesses.
• Collaboration can be short-lived, lasting a few
minutes, or longer term, depending on the
nature of the task and the relationship among
participants.

30. Importance of Collaboration
• Changing nature of work.
• Growth of professional work.
• Changing organization of the firm.
• Changing scope of the firm.
• Emphasis on innovation.
• Changing culture of work and business.

31. Business Benefits of Collaboration and
Teamwork

32. Requirements for Collaboration

33. Tools and Technologies for
Collaboration and Teamwork
• A collaborative, team-oriented culture won’t produce
benefits if there are no information systems in place to
enable collaboration.

34. Internet-Based Collaboration
Environments
• Virtual Meeting Systems
• Google Apps/Google Sites
• Microsoft Sharepoint

35. Virtual Meeting Systems
• Video Conferencing and Web Conferencing
Technologies
• An important feature of leading-edge high-end
videoconferencing systems is telepresence
technology, an integrated audio and visual
environment that allows a person to give the
appearance of being present at a location other
than his or her true physical location.

36. Google Apps/Google Sites
• One of the most widely used “free” online services
for collaboration is Google Apps/Google Sites.
• Google Sites allows users to quickly create online,
group-editable Web sites.
• Google Sites is one part of the larger Google Apps
suite of tools.
• Google Sites users can design and populate Web
sites in minutes and, without any advanced
technical skills, post a variety of files including
calendars, text, spreadsheets, and videos for private,
group, or public viewing and editing.

38. Microsoft Sharepoint
• Microsoft SharePoint is the most widely adopted
collaboration system for small and medium-
sized firms that use Microsoft server and
networking products.
• SharePoint has a Web-based interface and close
integration with everyday tools such as
Microsoft Office desktop software products

40. See you next chapter